XPO's second quarter revenue and EPS beat estimates, driven by a record LTL adjusted operating ratio of 79.9%.

XPO reported second quarter revenue of $2.36 billion, an increase of 13.2% year-over-year, and adjusted diluted EPS of $1.70, up 61.9% from the prior year. Both top and bottom-line results surpassed analyst expectations, driven by significant outperformance in the company's North American Less-Than-Truckload (LTL) segment.

Key Highlights

• The North American LTL segment achieved a record adjusted operating ratio of 79.9%, a 300 basis point improvement year-over-year, beating the 81.5% analyst estimate.
• Revenue in the North American LTL segment grew 15.2% year-over-year to $1.43 billion, supported by a 4.4% increase in yield (excluding fuel) and a 2.8% rise in shipments per day.
• Consolidated adjusted EBITDA increased 27.6% year-over-year to $434 million, with adjusted operating income in the LTL segment growing 36% to $287 million.